The Commission: New Season, New Cast
But also — Draghi report, Competition, Slovakia, Migration, China, Deforestation
Hi! This is September 18, and here’s the EU news you need this week. Feel free to share this newsletter with friends and colleagues, and follow us on Twitter and Linkedin.
We usually send the newsletter on Monday morning but this week, we published our interview with Margrethe Vestager — check it out here. We’ll be back to the normal schedule starting next Monday.
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The Briefing
Here’s the cast! The names of the 26 European Commissioners-designate have been revealed by Ursula von der Leyen, the President of the European Commission. As with any production, some actors have been given leading roles, while others will have to make do with supporting roles. But nothing is certain: all of them must undertake one last, fateful task — a bit like the main character in that Hollywood movie, if you wish. Still not finding it exciting? We tried our best.
WHAT? • On Tuesday, Ursula von der Leyen unveiled the (proposed) composition of the European Commission’s College of Commissioners. The 27 Commissioners — one from each EU Member State — oversee the direction of the work within the European Commission, where over 30,000 people work, for a five-year mandate.
In July, after the European elections, Ursula von der Leyen was proposed by the EU-27 and re-appointed at the helm of the Commission by the European Parliament. Top of her to-do list: setting up the College of Commissioners, based on proposals from the Member States.
In August, each Member State put forward one or two names. In close collaboration with the capitals, Ursula von der Leyen interviewed candidates and negotiated the distribution of portfolios. She must manage Member States’ expectations, take the Parliament’s composition into account, and aim for a gender-balanced team. Traditionally, "big" Member States (France, Germany) obtain major portfolios.
THE (BRE)TONE IS SET • On Monday, the day before Ursula von der Leyen's press conference, European Commissioner Thierry Breton (France) left with a bang. He will not even finish his current term of office.
Breton had been proposed by Emmanuel Macron in 2019 and has spent the last five years overseeing a super-portfolio spanning over the internal market, digital policy, space industry and defence. Earlier this summer, Emmanuel Macron proposed he be reappointed as Commissioner.
So, what happened? Thierry Breton's letter of resignation, published on X, helps put some of the puzzle pieces together. He accuses Ursula von der Leyen of asking France to propose another name as Commissioner in exchange for a more influential portfolio. According to him, all of this has to do with personal grudges. He also criticises a “questionable governance”.
Ursula von der Leyen and Thierry Breton have a complicated relationship — in recent months, the two have been more or less in open conflict.
EMMANUEL • Von der Leyen reportedly called Emmanuel Macron to inform him that she could no longer work with Thierry Breton and that she wanted another name for the position.
Some will see this request as a political coup de force from the Commission, or even an affront from Germany to France. Others will see it as weakened Emmanuel Macron’s attempt at maintaining his influence in Brussels by keeping the president of the EU executive on his side, securing an important portfolio for his country, and placing a loyal ally — Stéphane Séjourné — in an influential position.
Stéphane Séjourné was an MEP from 2019 to early 2024. He was the president of Renew Europe, the political group where the EU’s liberals sit, before leaving for the French Ministry of Foreign Affairs.
The portfolio he will inherit is very similar to that of Thierry Breton. As a result, the hypothetical arrangement between Ursula von der Leyen and Emmanuel Macron — another candidate in exchange for a major role — is not necessarily obvious when looking at the portfolio of the future French Commissioner. (If you're interested, his full mission letter is available here.)
Stanley Pignal, from The Economist, notes: "France didn't really get a huge beat, no bigger than one would have expected. This makes me think that France will get more from VDL." Perhaps an important role in von der Leyen's cabinet or in the Commission's secretariat general, says Stanley.
Breton left his mark in Brussels. His straightforward style and bold proposals pushed the EU to think critically about itself on issues relating to industry, technology and competitiveness. He was also a divisive figure: speaking out and making proposals on matters that did not fall within its remit, firing shots at Elon Musk without warning the Commission, and was sometimes accused of putting French interests first.
WHO GOT WHAT • Enough about France. On Tuesday, Ursula von der Leyen revealed all the names and portfolios of Commissioners-designate.
Overall, the Commission is shifting right, reflecting the results of this year’s European elections. The Social Democrats and Liberals lose a few Commissioners, while half of the College now comes from the European People’s Party (EPP, centre-right). The College of Commissioners is more gender-balanced than expected, but less than the current one.
One of the big winners is Spain, where socialist Teresa Ribera Rodríguez has won an influential portfolio between competition and the ecological transition. To find out what advice Margrethe Vestager — who headed the EU's competition policy for 10 years — has for her successor, read our latest interview.
Italy's Raffaele Fitto, proposed by Giorgia Meloni, has been given one of the executive vice-president roles. This is the first time that someone from outside the mainstream parties has been given this role, which is likely to cause a stir in the European Parliament.
The full list of Commissioners-designate chosen by Ursula von der Leyen is available here.
WHAT NEXT • If there is one lesson to be learned from the formation of the European Commission, it is not to declare victory too soon.
All the Commissioners appointed by Ursula von der Leyen will have to go through hearings at the European Parliament, during which their past will be scrutinised and their knowledge tested. The entire College must then be approved by the European Parliament in a simple majority vote.
Every year, several candidates are forced to withdraw, having failed to convince a majority of MEPs. In 2019, Sylvie Goulard had to withdraw in favour of... Thierry Breton. Which goes to show that nothing is ever certain.
Inter Alia
DRAGHI • Mario Draghi finally presented his long-awaited report on the future of European competitiveness. The former Italian Prime Minister warned that if the EU does not act quickly, it risks a "slow agony".
Reactions from Europe's capitals to the report — which calls for €800 billion a year in additional investment at European level — have been mixed. German Finance Minister Christian Lindner has already opposed the idea of a common debt.
As a sign of Ursula von der Leyen’s wish for the Draghi report to not be filed away in a cupboard: the report is mentioned in all the mission letters sent on 17 September to Commissioners-designate.
COMPETITION • The Court of Justice of the European Union has ordered Apple to repay €13 billion in unpaid taxes to Ireland.
This case concerns tax rulings, i.e. agreements concluded between Irish authorities and tech companies in order to attract them to Ireland. These arrangements excluded profits generated by the use of intellectual property licences from the tax base, allowing Apple to benefit from a tax rate of less than 1%.
In so doing, the Court upheld the Commission's 2016 decision that the agreement amounted to illegal state aid. Apple and Ireland had appealed against the decision and obtained its annulment before the General Court of the EU in 2020.
The Apple ruling marks a turning point in case law, which until now had refused to condemn tax avoidance schemes under competition law. Companies such as Amazon and Starbucks had also been challenged for their respective tax arrangements with Luxembourg and the Netherlands.
A few days earlier, the Court of Justice confirmed the €2.4 billion fine imposed by the Commission on Google. Google abused its dominant position in the online search market by favouring its own price comparison service, Google Shopping.
SLOVAKIA • The European Commission is considering sanctions against Robert Fico's government for breaches of the rule of law in Slovakia, similar to those imposed on Hungary.
These measures could lead to the freezing of European funds, notably the €2.7 billion Covid recovery plan.
At issue is the abolition of an anti-corruption office and a tougher stance on the opposition, particularly with regard to freedom of expression following an assassination attempt on Fico. The Prime Minister has already restricted funding for NGOs and is proposing a law to control opposition speeches at demonstrations.
Commissioner Jourová, who is responsible for protecting the rule of law, warned Fico of the potential consequences for Slovakia.
MIGRATION • On September 9, Germany has extended temporary checks to all its land borders.
This decision comes in the wake of the far-right's breakthrough in regional elections and a terrorist attack in Solingen last month. Chancellor Scholz's SPD is hoping to improve its score in the forthcoming Brandenburg state elections this weekend.
Although these measures remain in line with the Schengen Agreement, they are creating tensions with Germany's neighbours, who see them as an infringement of freedom of movement. Additionally, the extension of 'temporary' border controls with the Czech Republic, Poland and Switzerland (in force since October 2023) and with Austria (since 2015) raises doubts about the provisional nature of this decision.
The Pact on Migration and Asylum, adopted last May, aims to improve the distribution of asylum applications between Member States — but it will not be fully operational until 2026.
CHINA • China will not make any concessions on the price of its electric vehicles or on the volumes exported to Europe, according to Chinese media. The EU is gearing to impose anti-dumping duties on electric vehicles manufactured in China.
Several European governments have expressed doubts about the introduction of anti-dumping duties. This is the case of Germany, Sweden and more recently Pedro Sanchez, the Spanish Prime Minister, who announced last Wednesday that he was "reconsidering" his position on the decision to be taken.
Chinese Trade Minister Wang Wentao and Trade Commissioner Valdis Dombrovskis will meet on 19 September for final negotiations. The EU Council is set to vote on 25 September on the Commission's proposal to impose tariffs for 5 years.
A qualified majority against the proposal is required to block it.
DEFORESTATION • On September 12, Ngozi Okonjo-Iweala, the Director General of the World Trade Organisation (WTO), asked the European Commission to "reassess" its ban on imports of goods derived from deforestation.
The EU’s Deforestation Regulation (EUDR) aims to prohibit the export and sale on the EU market of products that have contributed to deforestation or forest degradation.
From 30 December 2024, the rules will apply to seven raw materials (coffee, cocoa, rubber, palm oil, soya, beef and timber), as well as by-products (leather and even books).
Brazil, which would be greatly affected by the new rules, said the rules are "unilateral and punitive". The United States has also been highly critical of the regulation, particularly because of uncertainty on how certain rules will be implemented.
What We’ve Been Reading
In the first edition of his newsletter, Silicon Continent, economist and former MEP Luis Garicano investigates the impact that GDPR has had on innovation.
FT’s Alice Hancock and Devex’s Rob Merrick listen to critics of EU environmental policy.
This edition was prepared by Augustin Bourleaud, Antoine Ognibene, Marwan Ben Moussa, Lidia Bilali, Elisa Zevio, and Maxence de La Rochère. See you next week!
Great roundup as ever from the What’s Up team.
A side note on the Mario Draghi report. Alongside his proposals for more investment, Draghi called for a reassessment of bank regulations to improve European banks’ capacity to lend. That idea was firmly rejected by the ECB’s chief bank supervisor Claudia Buch:
https://open.substack.com/pub/ecbwatch/p/buch-says-no-to-deregulation?r=39fkzi&utm_medium=ios